The mainstream media has put out a lot of stories detailing the demise of the Mt. Gox exchange, but they haven't had nearly as much to say about why Bitcoin prices are rising again.

Maybe that's because so many of them are rooting for Bitcoin to fail, especially if they're on record having written off the digital currency as a bubble.
But reality keeps interrupting that narrative – and rather rudely.

The day that Mt. Gox went dark, Feb. 25, the CoinDesk Bitcoin Price Index (BPI), a composite of the major Bitcoin exchanges, slumped as low as $462.98. That represented a 60% drop from the BPI peak of $1,147.34 hit on Dec. 4, and appeared to confirm that Bitcoin was fast on its way to the dustbin of history.

Except that Bitcoin prices started to quickly recover. The next day Bitcoin prices rose as high as $589.81, a 27.4% increase.

For the next week or so, Bitcoin prices stabilized. Then on Monday Bitcoin prices shot up another 18% to $661.12, and then got within $5 of $700 on Tuesday.

Individually, several of the major Bitcoin exchanges breached the $700 barrier, with BitStamp going as high as $710.

What makes this latest Bitcoin price surge all the more remarkable is the steady drumbeat of bad news about the digital currency over the past month or so.

First there was the Mt. Gox affair. Long plagued by issues in getting fiat currencies from Mt. Gox to user bank accounts, by January customers were complaining of slow Bitcoin transfers. Then, on Feb. 7, Mt. Gox stunned customers by freezing all Bitcoin transfers.

The wild upswings are just as bad as the downswings if bitcoin is ever to be taken seriously as a real currency. No one will take it seriously when it goes up 50% one week, and then down 50% the next, then up 40% and down 45%, etc. That is not people investing. That is people gambling..or worse, manipulating the price to profit short term.

Bitcoin reminds me of another scam that was going on 30 years ago. It was a typical pyramid scheme and I knew a few people who made a lot of money by entering into the scam early on. But sooner or later, as with all scams, the bottom falls out and the late comers get hit the worst. I mean really, how can anyone take this Bitcoin seriously when outlets that dole out the Bitcoin can just close their doors and walk away with your money, declaring bankruptsy. And there is absolutely nothing to stop them. Nothing, no regulations, no laws, nothing. Come on!!!! How can anyone continue to look at this scam and think that it has a future. Both India and China have banned it. How many more countries will ban it? And when I read supposedly respectable financial analysts touting this Bitcoin, it makes me question ALL of their recommendations.

I'm guessing it rose cause it hit a major support zone and pro traders ripped the face of those who tried to short it thinking they can trade the news and that don't have a clue how to read a price chart. The next dump will come at the next significant supply zone, that is when the real test of "the news" will determine the possible longer term ramifications of the Gox failure. After seeing whats happened here lately only a complete fool would buy into this scream ride.

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